KEY POINTS:
Three large apartment projects in the volatile Queenstown property area have drawn funding from Dominion Finance.
Developers cannot always get enough money from pre-sales or trading banks to fully fund multimillion-dollar complexes, so second-tier lenders like Dominion are used for the more risky loans, often secured by a second mortgage and ranking behind the first loan to a larger financial institution.
The company funded real estate developments in Auckland, New Plymouth, Christchurch and Queenstown. One of the largest projects was The Rees, a luxury Queenstown hotel/apartment complex where 23 units are finished but 89 are planned.
Benbrae - 44 village-style family and group accommodation complexes in the Cardrona Valley - also got money from Dominion. Developer Peter Turner said yesterday the $2 million borrowed from Dominion was repaid last year after Benbrae's first stage had been sold. Dominion had the second mortgage behind ASB, Turner said.
The Glebe, a luxury 38-apartment complex above Queenstown's shopping and entertainment centre, also got funding from Dominion.
The business carved out a niche in commercial and residential real estate funding and loaning to the horticulture, viticulture, agriculture and tourism sectors.
"The company's loans are spread throughout the country, ensuring that investor support is reciprocated with funds being channelled back into various regions. The vast majority of loans are secured by either first or second mortgages," Dominion said.
Dominion provided money for the Whisper Cove luxury housing project north of Auckland, a concept originally launched by developer Tim Manning. Whisper Cove is a six-house waterfront subdivision on the shores of Kawau Bay, 45 minutes north of Auckland.
Dinah Mackey of Bayley's Real Estate, who is marketing the development, said houses there had sold from $700,000 to $2.4 million.
Dominion also provided funds for the development of 46 units in a Browns Bay housing project.
In Christchurch, Dominion loaned money on Workstation 55, a multi-stage development and refurbishment of older commercial buildings. It also provided finance for a 13-level Christchurch block with 18 upmarket apartments. In New Plymouth, Dominion invested in the conversion of a former club into luxury apartments.
